San Francisco Chronicle - (Sunday)
Tax hikes worsen woes of residents in destitute Gaza
GAZA CITY — Gaza’s Hamas rulers have imposed a host of new taxes on imported clothes and office supplies just ahead of the new school year, sparking rare protests in the impoverished coastal strip.
The move by the militant group comes at a time when Gaza’s 2.3 million people are suffering not only from a 15year Israeli-Egyptian blockade, but also from a new jump in prices caused by global supplychain issues and the Russian invasion of Ukraine.
“This is a wrong, oppressive decision that destroys the national economy,” said Nahed al-Sawada, who imports clothes from China and Turkey.
A list by the Ministry of Economy includes planned taxes on items like packaged nuts, with an import tariff of 2,000 shekels (nearly $600) per ton. In the past, nuts were imported tax free. The tariff on a ton of toilet paper rose from $90 to $580. The taxes are set to go into effect on Aug. 1.
The list also includes a tax of about $3 on pair of jeans, and $230 on a ton of plastic folders used to store papers. Demand for such items increases ahead of the school year.
Emad Abdelhadi, a representative for Gaza’s union of clothes’ merchants, said a new pair of jeans sells for $3 to $10, and the new tax will set an unfair burden on struggling consumers. In a territory suffering from rampant poverty and unemployment approaching 50%, he said many Gazans already look for used clothes. The new taxes, he said, “will deprive them of the ability to buy.”
Residents shop for clothes Monday at an outdoor market in Gaza City. The territory’s Hamas rulers have announced a host of new taxes, triggering rare protests in the impoverished region.
Gaza’s economy has been hit hard by the Israeli-Egyptian blockade, imposed when Hamas seized power in 2007. Israel says the blockade is needed to prevent Hamas from arming, but critics say the restrictions, which include tight limits on exports, amount to collective punishment.
Hamas’ government is not internationally recognized and Israel and its Western allies
consider the group, which opposes Israel’s existence and has in the past staged deadly suicide bombings against Israelis, a terrorist organization.
With tens of thousands of civil servants to support, as well as its heavy spending on its military wing, it is no surprise that Hamas is seeking new sources of revenue. Still, the timing is questionable, coming when Russia’s invasion
of Ukraine has driven up consumer prices worldwide.
Protests against Hamas are rare and often met by force. But about two dozen members of the clothes merchants’ union expressed their frustration in public this month. And days later, they gathered at the offices of Hamas lawmakers.